Project Labor Agreements

W02-7: Modern project agreements have their roots in construction developments in World War II, and they emerged in the post-war era at atomic energy and space and missile sites. The defense program, begun in earnest following the fall of France in May 1940, required a large increase in construction activity. Federal government expenditures on new construction activity rose from $1, 397 million in 1940 to $3.85 million in 1941 and $9,544 million in 1942. Such demands for skilled labor came upon an industry that had been badly depressed in the 1930s. It was particularly difficult to man some projects in isolated areas, and double-time rates on hours over eight in the regular workweek and on extra shifts were often adopted to complete vital projects…